Proto Labs Inc (PRLB)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 32.44 | 31.86 | 31.17 | 31.37 | 34.71 |
| Receivables turnover | 5.86 | 6.10 | 5.99 | 7.44 | 7.98 |
| Payables turnover | 28.34 | 24.93 | 16.17 | 18.67 | 20.81 |
| Working capital turnover | 3.31 | 4.26 | 3.79 | 2.27 | 2.43 |
Proto Labs Inc's inventory turnover has been fairly consistent over the past five years, ranging between 19.94 and 22.18. This indicates that the company is efficiently managing its inventory by quickly converting it into sales.
The receivables turnover has also remained relatively stable, with a slight increase from 6.00 in 2021 to 6.71 in 2023. This suggests that Proto Labs Inc is collecting its receivables in a timely manner, although there might be some room for improvement.
In terms of payables turnover, there has been a noticeable increase from 10.46 in 2021 to 18.03 in 2023. This indicates that the company is taking longer to pay its suppliers compared to previous years, which may have implications for its relationships with vendors.
Proto Labs Inc's working capital turnover has fluctuated over the years, but overall the trend has been positive, with an increase from 2.27 in 2020 to 3.34 in 2023. This suggests that the company is efficiently utilizing its working capital to generate revenue.
Overall, Proto Labs Inc appears to be effectively managing its activity ratios, with strong inventory turnover and improving working capital turnover. However, the company may want to monitor its payables turnover to ensure that it maintains positive relationships with its vendors.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 11.25 | 11.46 | 11.71 | 11.63 | 10.52 |
| Days of sales outstanding (DSO) | days | 62.25 | 59.85 | 60.92 | 49.09 | 45.71 |
| Number of days of payables | days | 12.88 | 14.64 | 22.57 | 19.55 | 17.54 |
Proto Labs Inc's activity ratios provide insights into the efficiency of the company's operations in managing its inventory, collecting receivables, and paying suppliers.
1. Days of Inventory on Hand (DOH):
- Proto Labs Inc's DOH has decreased slightly from 18.16 days in 2022 to 17.68 days in 2023. This implies that the company has been able to sell its inventory faster in 2023 compared to the previous year. A lower DOH indicates efficient inventory management, which can lead to lower carrying costs and reduced risk of inventory obsolescence.
2. Days of Sales Outstanding (DSO):
- The DSO ratio for Proto Labs Inc has increased from 59.99 days in 2022 to 54.38 days in 2023. This means that it is taking the company fewer days to collect its accounts receivable in 2023, which is a positive trend. A lower DSO indicates that the company is efficient in collecting revenue from its customers, enhancing its cash flow and liquidity position.
3. Number of Days of Payables:
- Proto Labs Inc's number of days of payables has declined from 23.21 days in 2022 to 20.25 days in 2023. A lower number of days of payables suggests that the company is paying its suppliers more quickly in 2023. While early payments may enhance supplier relationships, they could also indicate potential cash flow constraints.
In summary, Proto Labs Inc has shown improvements in inventory management and accounts receivable collection efficiency in 2023. However, the faster payment to suppliers might pose some liquidity challenges. Monitoring these activity ratios over time can provide valuable insights into the company's operational performance and financial health.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 1.97 | 1.90 | 1.74 | 1.54 | 1.74 |
| Total asset turnover | 0.65 | 0.61 | 0.53 | 0.58 | 0.68 |
The fixed asset turnover for Proto Labs Inc has been relatively stable over the past five years, ranging from 1.54 in 2020 to 1.99 in 2023. This ratio indicates that the company generates about $1.99 in sales for every $1 invested in fixed assets, reflecting efficient utilization of fixed assets to generate revenue.
On the other hand, the total asset turnover ratio has shown more variability, with a low of 0.53 in 2021 to a high of 0.68 in 2019. This ratio suggests that Proto Labs Inc generates around $0.65 of sales for every $1 of total assets. A lower total asset turnover could indicate underutilization of assets or possibly a shift towards more capital-intensive operations.
Overall, the fixed asset turnover indicates effective management of fixed assets to generate sales, while the total asset turnover points to fluctuations in how efficiently the company is utilizing its total assets to generate revenue. It would be important for Proto Labs Inc to monitor these ratios and ensure they are optimizing asset utilization to drive profitability and growth in the long term.